I don't think Hard Money is risky at all. 

If you don't have sponsorship, by definition you don't have a deal - full stop. in some aspects, but but I'd argue in development you have to find land and partners at the same time. you have to have a competitive advantage and local knowledge. may not apply and probably different sectors. we break development up into multiple raises like Series A, Series B, etc in venture debt and discount equity tranches based on what stage the investor comes in for higher returns it's earlier like when we are investing in engineering services etc we recapitalize and spend our money with an equity sale and recapitalization. structured finance is so interesting 

If you have doubts do not go with it is my adviceIt is a lot of money if you have second thoughts rightThere will be other deals in Gulf Shores ALFrankly it is not such that thousand people are waiting in line to buy there:)

Is anyone using money market funds for this purpose?

Is there a way to offer and buy a property for cash (either private or hard money) then refi into a mortgage at 95% LTV?

I would not play around with creative finance in terms of spending time trying to find it because it will end up not being the best use of your time unless you have marketing money and understand the different scripts and way you can help people with seller finance or sub to.

Also, since it is nearby the LA county areas, how does earnest money work?

I won't be another grown man's emotional punching bag for any amount of money.

This is tough.Depends on how fuzzy you want the business/family line to be.The only thing I'd be absolutely sure of is that your money has more tangible security than being a "personal loan" EVEN IF you cut him a break on cost. 

Maybe some extra money owed on taxes?